President Barack Obama – International Trade Law Compasshttps://internationaltrade.foxrothschild.com
Mon, 26 Aug 2019 14:11:28 +0000en-UShourly1https://wordpress.org/?v=4.9.11https://internationaltrade.foxrothschildblogs.com/wp-content/uploads/sites/39/2016/08/cropped-cropped-favicon-32x32.pngPresident Barack Obama – International Trade Law Compasshttps://internationaltrade.foxrothschild.com
3232Treasury Expands Sanctions for Maduro Supportershttps://internationaltrade.foxrothschild.com/2019/02/articles/office-of-foreign-assets-control-ofac/treasury-expands-sanctions-for-maduro-supporters/
https://internationaltrade.foxrothschild.com/2019/02/articles/office-of-foreign-assets-control-ofac/treasury-expands-sanctions-for-maduro-supporters/#respondTue, 26 Feb 2019 14:38:17 +0000https://internationaltrade.foxrothschild.com/?p=654In recent weeks, the United Stated Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) expanded the scope of sanctions against current and former Venezuelan government officials who have supported controversial President Nicholas Maduro and his regime of corruption and human rights abuses.

The first sanctions implemented against Venezuelan individuals and entities were authorized by President Barrack Obama in March 2015 (Executive Order 13692). Following President Maduro’s re-election to a second six-year term on May 20, 2018, President Donald Trump has expanded the scope of both the prohibited conduct and the designated individuals and entities subject to sanctions.

On November 1, 2018, President Trump issued Executive Order 13850 broadly prohibiting transactions with individuals directly or indirectly involved in the deceptive and corrupt practices of the Government of Venezuela. President Trump has subsequently issued Executive Orders designating specific individuals and entities subject to the sanctions regime. On January 28, 2019, Executive Order 13857 revised the definition of “Government of Venezuela” (which is subject to sanctions) to specifically include, among others, the Central Bank of Venezuela and state-run oil company Petroleos de Venezuela, S.A. (“PdVSA”) Further, in press releases on February 15, 2019 and February 25, 2019, OFAC announced additional individuals and entities with whom transactions are prohibited. Among those named in the recent press releases are Venezuelan military and intelligence officers, the head of the Special Action Force of Venezuela’s police, the President of PdVSA, and, most recently, the Governors of four Venezuelan states that have aligned themselves with President Maduro.

The recent press releases note that sanctions “need not be permanent” and that removal of sanctions is possible for individuals who “take concrete and meaningful actions to restore democratic order, refuse to take part in human rights abuses, speak out against abuses committed by the former Maduro regime, and combat corruption in Venezuela.”

For US companies transacting across borders, it always essential to verify that their business partners are not subject to US sanctions. With the rapidly changing scope of sanctions relating to Venezula, the need to consult with experienced counsel is even greater and must continue on an ongoing basis throughout the life of a transaction of business venture.

On June 16, 2017, President Trump announced changes to United States’ Cuban sanctions regime which will stem the tide of liberalization that Obama Administration set in motion 2014. While the regulatory changes have not yet taken effect, the Department of Treasury’s Office of Foreign Assets Control (OFAC) released updated its online resources to reflect the Trump Administration’s forthcoming changes. Most notably, under the announced changes, individual “people-to-people” travel will no longer be permitted and any trade or business ventures involving Cuba’s military, intelligence and security services is strictly prohibited.

Travel

Trump Administration’s new Cuban travel policies crack down on the potential for individual ‘vacation’ travel to Cuba. Under the Obama Administration’s reforms to the Cuban sanctions, individuals could travel to Cuba as long as they affirmed that they were engaged in permitted activities, such as educational and artistic study, news reporting, or other endeavors designed to promote and aid the Cuban people. Under the newly announced changes, individuals will no longer be able to travel to Cuba on their own for “people-to-people travel” (i.e., educational travel that does not involve any academic study towards the pursuit of a degree and is not under the auspices of an organization). Group people-to-people travel will still be permitted as long as the group is led by a U.S.-based organization and maintains a full-time schedule of educational or other permitted activities. Unfortunately for those who may have already booked their tickets to Havana, the new regulation will not be prospective, meaning that any travel that does not conform with the new regulations (even if previously planned) will be prohibited.

Trade and Business

Companies seeking to do business in Cuba will also have to navigate stricter regulations. While trade and business ventures with the Cuban government remained restricted under the Obama Administration’s revised sanctions, the new rules will more clearly delineate entities which are associated with Cuban military conglomerate Grupo de Administración Empresarial SA (GAESA). GAESA, which is comprised of Cuban military, intelligence, and security services, has an extensive web of subsidiaries and ownership interests which some estimate touch as much as 60 percent of the Cuban economy. OFAC and Department of Commerce, Bureau of Industry and Security (BIS) will publish an extensive list of prohibited entities when the new regulations are completed. The new trade policy will be prospective, however, meaning that any contracts and licenses executed and issued prior to effective date of the new regulations will not be terminated.

What Should U.S. Companies Do?

U.S. companies which have already entered into contracts with a GAESA-related companies will be able to continue operating without any change. Any U.S. company seeking to begin or expand business in Cuba after the new policy takes effect, however, must heed the warning that any transaction with GAESA-related entities is prohibited. Moreover, while OFAC and BIS will strive to produce a comprehensive list of GAESA-related entities, it may prove to be a difficult and ever-evolving challenge. Accordingly, despite any published list of entities, it will almost certainly remain the responsibility – and potential liability – of U.S. companies to know with whom they are conducting business. In addition, U.S. companies must be vigilant about any renewals of contracts or licenses with GAESA-related entities, as there has been little guidance as to whether renewing an existing contract will be considered continued operation or a new, prohibited engagement.

]]>https://internationaltrade.foxrothschild.com/2017/07/articles/global-trade/trump-administration-tightens-cuba-sanctions/feed/0Obama Will Address the USIIC Delegationhttps://internationaltrade.foxrothschild.com/2016/06/articles/global-trade/obama-will-address-the-usiic-delegation/
https://internationaltrade.foxrothschild.com/2016/06/articles/global-trade/obama-will-address-the-usiic-delegation/#respondFri, 03 Jun 2016 13:05:45 +0000https://internationaltrade.foxrothschild.com/?p=208On June 20, 2016, U.S. President Barack Obama will deliver the keynote address at the meeting of the international trade and investment delegation. This event is being organized by the United States – India Imports Council (USIIC).

The USIIC will be taking a trade and investment delegation composed of 18 members from Gujarat, India, to the U.S. The delegation will attend SelectUSA, a project of the U.S. Department of Commerce, where the U.S. will present its trade benefits to over 50 other countries. The goal is to promote foreign direct investment and trade in the U.S. The delegates from Gujarat represent several business sectors, including infrastructure, mining, logistics, pharmaceuticals, automotive, and financial services.

For more information about the USIIC and the trade relationship between the U.S. and India, visit the USIIC website.

]]>https://internationaltrade.foxrothschild.com/2016/06/articles/global-trade/obama-will-address-the-usiic-delegation/feed/0U.S. Lifts Arms Embargo on Vietnamhttps://internationaltrade.foxrothschild.com/2016/05/articles/global-trade/u-s-lifts-arms-embargo-on-vietnam/
https://internationaltrade.foxrothschild.com/2016/05/articles/global-trade/u-s-lifts-arms-embargo-on-vietnam/#respondMon, 23 May 2016 12:00:27 +0000https://internationaltrade.foxrothschild.com/?p=199U.S. President Barack Obama announced that the U.S. would fully lift a ban on the sale of lethal arms and military equipment to Vietnam. President Obama announced this change in U.S. policy, which has been in place for about fifty years, during his visit to Vietnam on Monday, May 23, 2016. At a joint news conference with Vietnamese President Tran Dai Quang, President Obama said this move would remove a lingering “vestige of the Cold War” and complete what has been a lengthy process towards normalization with Vietnam, which began in 1995.

Despite the complete embargo lift, sales with Vietnam will still need to meet strict trade requirements. The sale of arms will still depend on Vietnam’s human rights commitments and will be made on a case-by-case basis.

Reporters suspect that this measure is a response to the activity of China in the South China Sea. China has claimed several contested reefs in the South China Sea and constructed military capable airfields. Critics claim that the decision to lift the arms ban suggests that the U.S. is more concerned with China’s activity in the South China Sea than it is with Vietnam’s record of improving human rights in Vietnam. However, President Obama said the arms lift was not related to China.

The trip to Vietnam is meant to strengthen the bond between the U.S. and Vietnam. Both imports and exports between the two countries have steadily increased in recent years. Security experts see the U.S. decision to lift the arms embargo as an effort to form a bond with Vietnam as a trade and security partner in that region.

]]>https://internationaltrade.foxrothschild.com/2016/05/articles/global-trade/u-s-lifts-arms-embargo-on-vietnam/feed/0President Obama to Visit Cubahttps://internationaltrade.foxrothschild.com/2016/02/articles/global-trade/president-obama-to-visit-cuba/
https://internationaltrade.foxrothschild.com/2016/02/articles/global-trade/president-obama-to-visit-cuba/#respondFri, 19 Feb 2016 14:19:57 +0000http://internationaltrade.foxrothschild.com/?p=165President Obama announced on Thursday that he would travel to Cuba in March and meet with Cuban President Raúl Castro. The two men first met face-to-face during a summit in Panama last year, but President Obama has never visited Cuba. In fact, President Obama will be the first sitting American president to visit Cuba in 88 years. The last president to visit Cuba was President Coolidge who attended the Pan American Conference in Havana in January 1928.

Recently, there has been significant communication between the two countries, including American officials traveling to Havana on Tuesday to sign a pact that will for the first time in decades allow scheduled commercial flights between the two countries. Cuban officials are also in Washington this week to discuss ways of expanding business ties between the two countries.

Despite the President’s announcement in December 2014 regarding significant changes in the U.S. policy toward Cuba to normalize relations between the two countries, the Cuba embargo remains in place. Most transactions between the United States, or persons subject to U.S. jurisdiction, and Cuba continue to be prohibited, and OFAC continues to enforce the prohibitions of the Cuban Assets Control Regulations (CACR).

Effective on January 27, 2016, there have been several changes to the trade relationship between the two countries. These changes are targeted at further engaging and empowering the Cuban people by facilitating authorized travel to Cuba; certain authorized commerce; and the flow of information to, from, and within Cuba. For more information about the loosening of Cuban sanctions, see our earlier post here.